Do you know? Special purpose acquisition company (SPAC) in Malaysia: The SC issued a SPAC framework in 2011, which was one of the first in Asia. The rules include: (1) minimum RM150m IPO size (2) 90% of proceeds to be placed in a trust account (3) must complete a qualifying acquisition (QA) within 3 years…
Do you know? Special purpose acquisition company (SPAC) in Malaysia: A SPAC is a blank-cheque company i.e. a shell entity that raises money through an IPO, without any business operations. It must acquire or merge with a private target within a set time frame, usually 3 years. Investors buy into the management team’s track record,…
Do you know? Private investment in public equity (PIPE): Some difference between PIPE and private placement in Malaysia are (1) listed companies in Malaysia must obtain shareholders’ approval and Bursa Malaysia’s approval before the private placement of shares (2) SC approval is required for the issuance of convertible debt (3) the placement share price in…
Do you know? Private investment in public equity (PIPE): The disadvantages of PIPE are (1) existing shareholders’ ownership gets diluted when new shares are issued (2) frequent PIPEs can signal that a company can’t raise money through normal public channels and (3) if PIPE investors sell quickly once their restrictions lift, the share price can…
Do you know? Private investment in public equity (PIPE): The benefits of PIPE to the investors are (1) they buy shares cheaper than market price (2) there is upside potential if the company performs well and (3) PIPEs that offer securities that convert into more shares later could increase return potential. Equity Debt Digital assets…
Do you know? Private investment in public equity (PIPE): The benefits of PIPE to the company include (1) it is much quicker to close than a public offering e.g. no lengthy prospectus or roadshow (2) terms are flexible and can be customised (3) confidentiality can be maintained because negotiations are privately concluded before being announced…
Do you know? Private investment in public equity (PIPE): The PIPE shares are initially restricted, which means that they can’t be sold immediately. After the company files a resale registration statement, investors can sell their shares on the public market. Equity Debt Digital assets M&A Malaysian Other markets
Do you know? Private investment in public equity (PIPE): PIPE can be considered when a public company wants to raise money quickly. It negotiates directly with institutional investors. The investors agree to buy shares or convertible instruments at a discount to the market price. Since it is a private placement, the company files with the…
Do you know? Private investment in public equity (PIPE): A public company issues new shares (or convertible securities like bonds or preferred stock) to private investors at a negotiated price, typically below the current market price. Private investment because the buyers are private investors, not the general public. Public equity because the target is a…
Do you know? Budget 2026: From 2026, Malaysia is moving stamp duty to a self-assessment system, and e-Invoicing will be fully rolled out for businesses earning more than RM500,000 per year in revenue, aiming to reduce tax leakage, improve compliance, and digitalise revenue collection. Equity Debt Digital assets M&A Malaysian Other markets